The president of Ghilotti Bros. Inc., the San Rafael construction company that reached a $950,000 settlement over a class-action labor lawsuit, said that while the company was "not perfect," it settled the case purely as an economic decision.

"This is not about who was right or wrong," Michael Ghilotti said. "This is about whether we could survive a lawsuit."

The plaintiffs sued in 2012, saying the company failed to pay the employees for all the hours they worked and discouraged meal breaks. The plaintiffs claimed they were not credited for time they spent loading and unloading trucks before arriving at work sites and after leaving them.

The lawsuit had three named plaintiffs — Jose Ramirez, Luis Gomez and Marck Mena Ortega — who loaded and drove trucks. But the class action included 245 employees overall.

Ghilotti said his first indication the plaintiffs were dissatisfied was when they sued. He said the employees did not use internal communication protocols that could have headed off litigation expenses for the family-owned local company. He said the company spent about $400,000 just responding to the lawsuit before settling. He said other companies in the industry also contend with damaging lawsuits that are less expensive to settle than fight.

"It's a tragic day for businesses and America, and a sad day for us," he said.

A federal judge gave the settlement final approval last week. Of the $950,000 in the settlement, $530,000 will be distributed among the class members, and the rest will cover attorneys' fees, litigation expenses and other costs.

Ramirez, Gomez and Ortega are still employed at Ghilotti Bros. The company has about 275 employees and more than $100 million in annual revenues, according to its website.